China's Covid lockdowns hit steel demand hard in April 2022. Shanghai, the country's largest city, had been under lockdown since late March, and on 11 April the steel hub of Tangshan was locked down again, only days after a 20-day restriction had been lifted. Construction sites and factories stood idle, trucks could not move, and mills saw orders dry up. Iron ore prices fell with demand: the benchmark 62 percent iron ore price dropped to 136 dollars a tonne delivered to China from 151 dollars on 22 April. Official data showed industrial output falling 2.9 percent year on year in April, with steel products down 5.8 percent. The lockdowns exposed how dependent the steel market had become on smooth logistics, and they pushed Beijing to weigh new stimulus for infrastructure. Traders expected demand to recover once restrictions eased, but the lockdowns lasted longer than most had forecast.
Source: OilPrice — https://oilprice.com/Latest-Energy-News/World-News/Steel-Demand-Is-Dwindling-As-China-Grapples-With-New-Lockdowns.amp.html
Photo: Wikimedia Commons (freely licensed).